We are going over for 9 days to watch the race and have a look around the south of France. Flying into Nice and probably use the train and bus to get about.

I don't want to be miles away from Monaco but a lot of accommodation is booked up and places are getting scarce or expensive now.

Any recommendations on where to stay?

Caravan site at Biot near Antibes. Railway station short walk from site with trains direct to Monaco. Lots of caravans British owned, can be hired directly from owners.

http://www.directholidayhomes.co.uk/pylone.html

It's very easy getting around the whole area, but watch out if you are limited for time, when you take the bus (the VERY cheap bus...). The train isn't much more, and WAY faster. Menton is nice and reasonable, if you want to go towards the Italian border (walking distance from Menton).

Italy is a good place especially around Ventimiglia as it's a short train ride into Monaco.
We stayed around there when we went to the ClassicGP last May.
Agriturismo are farmhouse B&B approved by the Govt. and if they offer dinner are obliged for it to something like 80% local produce.
Pick the right one and you'll eat gourmet, typical food at reasonable (but note not necessarily cheap) prices.
Language isn't so much of a problem as it used to be.
HTH.
Cheers, Pewe10

Thanks for that chaps, I will have a look at all those places... sorry for late reply (no notifications sent through).